- AUD/USD is expected to surrender the 0.6700 support on lower-than-expected China import data.
- Earlier, the Australian GDP data remained a little lower than estimates on a quarterly basis.
- The DXY has refreshed its two-decade high at 110.61 on soaring hawkish Fed bets.
The AUD/USD pair is eyeing a slippage below the immediate support of 0.6700 after the release of downbeat China’s import data. Chinese imports have landed extremely lower at 0.3% against the expectations and the former release of 1.1% and 2.3% respectively. Also, the export data have been trimmed to 7.1% vs. estimates of 12.8%. China’s Trade Balance has slipped sharply to $79.39B against the expectations of $92.7B. It is worth noting that Australia is a leading trading partner of China.
The week has remained too much volatile for the aussie bulls. First, the Reserve Bank of Australia (RBA) hiked the Official Cash Rate (OCR) by 50 basis points consecutively for fourth time and pushed the OCR to 2.35%. Also, the RBA provided a further roadmap by setting a target for interest rates at 3.85%, which will be met next year. Also, discussed the peak of the inflation rate, which is seen at 7%.
Then, Gross Domestic Product (GDP) numbers, were mostly decent. The economic data landed at 0.9%, lower than the expectations of 1% but above the prior release of 0.8% on a quarterly basis. However, the annual data has improved to 3.6% against the estimates and the prior print of 3.5% and 3.3% respectively.
Too many catalysts this week are confusing the market participants in designing positions for the AUD/USD pair. Right from the rate hike decision by the RBA to mixed GDP numbers, investors are in fix to chase downside momentum due to an upbeat US dollar index (DXY) or shift to aussie bulls.
Meanwhile, the US dollar index (DXY) has refreshed it's two-decade high at 110.61 as odds of a rate hike by the Federal Reserve (Fed) have increased significantly. The speech from Fed chair Jerome Powell, scheduled on Thursday will dictate the likely monetary policy action.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to strong daily gains near 1.0900
EUR/USD trades at its strongest level since mid-October near 1.0900 after starting the week with a bullish gap. The uncertainty surrounding the US election outcome weighs on the US Dollar and helps the pair continue to push higher.
GBP/USD holds above 1.2950 as USD stays under pressure
GBP/USD stays in positive territory above 1.2950 after failing to clear 1.3000 earlier in the day. Heading into the US presidential election, the 10-year US Treasury bond yield is down more than 2% on the day, weighing on the USD and allowing the pair to hold its ground.
Gold trades around $2,730
Gold price is on the defensive below $2,750 in European trading on Monday, erasing the early gains. The downside, however, appears elusive amid the US presidential election risks and the ongoing Middle East geopolitical tensions.
Three fundamentals for the week: Toss up US election, BoE and Fed promise a roller coaster week Premium
Harris or Trump? The world is anxious to know the result of the November 5 vote – and may have to wait long hours for the outcome. Markets will also respond to the composition of Congress. The Bank of England and the Federal Reserve will enter the fray afterward.
US presidential election outcome: What could it mean for the US Dollar? Premium
The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.